Which of the following accounts in a merchandising company is affected by both the revenue cycle and another cycle?
A) sales
B) sales returns and allowances
C) inventory
D) accounts receivable
E) accounts payable

Question

Quizplus · Accepted Answer

Inventory in a merchandising company is affected by the revenue cycle when goods are sold and by the expenditure cycle when goods are purchased or returned to suppliers, making it involved in both cycles.

Which of the Following Accounts in a Merchandising Company Is